interim presentation third quarter 2017 q3 2017... · technical part of the test. customer and...
TRANSCRIPT
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Interim presentationThird quarter 2017
Sverre Hurum, CEOErik Stubø, CFO
9 November 2017
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Finansavisen 6 November 2017 Finansavisen 7 November 2017
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Highlights in the quarter
o Revenue and EBIT• Operating revenues increased by 22.8 percent
to NOK 344.2 million (y‐o‐y)• EBIT increased by 41.0 percent to NOK 17.1
million (y‐o‐y)
o 1 211 employees• Up 45 from Q2’17 • An increase of 166 in the past 12 months
o Still strong market
Revenue and number of employees
0
200
400
600
800
1000
1200
1400
Q3'12 Q3'13 Q3'14 Q3'15 Q3'16 Q3'17
MNOK and number
050100150200250300350400450
Q3'12 Q3'13 Q3'14 Q3'15 Q3'16 Q3'17
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Operational Review
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Public and private sector
5
48.7 %
51.3 %
Public sector
Private sector
51,7 % in Q3’1648,3 % in Q3’16
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4.1 %
9.0 %
2.6 %
5.1 %
5.7 %
26.2 %
22.1 %
6.4 %
10.2 %
6.3 %2.4 % Power supply
Health
Industry
Info and communication
Public adminOil & gas
Service industry
Transportation
Retail
Business sectors Q3 2017Bank & financeOther
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20 largest new customers (y‐o‐y)
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o Public admin• Increased by 29.8 percent (y‐o‐y)• Represents 26.2 percent of total revenues in Q3’17
o Oil & gas• Increased by 21.3 percent (y‐o‐y)• Represents 22.1 percent of total revenues in Q3’17
o Transportation• Increased by 30.8 percent (y‐o‐y)• Represents 10.2 percent of total revenues in Q3’17
o Info and communication• Increased by 44.7 percent (y‐o‐y)• Represents 5.7 percent of total revenues in Q3’17
Sectors with high increase in revenue
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Forsvaret
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Fifty ‐ a common platform for energy management
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o Fifty is a system for balancing the production and the reserves
o Developed for Svenska kraftnät and Statnett
o Deployed in operation during Q3
o Bouvet delivers three development teams
o 4 +1 +1 year contract
Foto: Statnett
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The Norwegian Armed Forces
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o In cooperation with the Norwegian Armed Forces, Bouvet contributes to the exchange of information and integration between F‐35 ALIS and the Norwegian Armed Forces systems.
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A platform for collaboration and knowledge sharing
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o Finansinspektionen is going to develop a new information, communication and collaboration platform
o The objective is to:• Increase competence sharing• Improve collaboration and project execution
across the organisation• Increase internal efficiency
o Bouvet will deliver a pre‐project including visual concept
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Connected health devices violate users privacy
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o On behalf of the Norwegian Consumer Council, Bouvet has carried out the technical part of the test
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Customer and project mix
o Project mix
• Variable contracts account for 96.8 percent of total revenues
o Customer portfolio
• The 10 largest customers represent 36.4 percent of total revenues – down from 36.5 percent in Q3’16
• The 20 largest customers represent 49.4 percent of total revenues – up from 48.4 percent in Q3’16
50%
60%
70%
80%
90%
100%
Q3'12 Q3'13 Q3'14 Q3'15 Q3'16 Q3'17
Variably priced contracts share of revenues
10 largest customers share of revenues
0%
25%
50%
75%
100%
Q3'12 Q3'13 Q3'14 Q3'15 Q3'16 Q3'17
13
Percentage
Percentage
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Customer development
o Existing customers*
• Accounted for 92.0 percent of revenues in Q3’17
o New customers**
• Customers won over the past year generated revenues of NOK 27.9 million in Q3’17
Revenue customer split
‐
50
100
150
200
250
300
350
400
Q3'16 Q3'17
Existing customers* New customers (LTM)**
* Existing customers defined as customers that were invoiced in the corresponding quarter last year** New customers defined as customers won since end of corresponding quarter last year
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MNOK
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Regional organisation
Trondheim
Bergen
Haugesund
Stavanger
KristiansandArendal
Skien
Sandefjord
OsloSandvika
Malmø
Ørebro Stockholm
102ansatte
Bouvet Nord
480ansatte
Bouvet Øst
27ansatte
Sesam
83ansatte
Bouvet Sverige
58ansatte
Bouvet Sør
369ansatte
Bouvet Rogaland
71ansatte
Bouvet Bergen
21ansatte
Konsernstab
Borlänge
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Enthusiastic and competent employees
o 1 211 employees at the end of the quarter
• Up 45 from Q2’17• 166 more employees in the past 12 months• Average number of employees in the quarter up
15.0 percent from Q3’16
Number of employees end of quarter
Annual growth in number of employees
0200400600800
1000
12001400
Q3'12 Q3'13 Q3'14 Q3'15 Q3'16 Q3'17
0%
5%
10%
15%
20%
Q3'12 Q3'13 Q3'14 Q3'15 Q3'16 Q3'17
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Percentage
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Financial Review
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Key figuresThree months ending Twelve months ending
MNOK 30.09.2017 30.09.2016 Change 30.09.2017 30.09.2016 Change
Operating revenue 344.2 280.4 22.8 % 1 531.2 1 281.6 19.5 %
Operating profit (EBIT) 17.1 12.1 41.0 % 127.9 99.5 28.6 %
EBIT margin 5.0 % 4.3 % 8.4 % 7.8 %
Ordinary profit before tax 17.0 11.4 48.9 % 129.3 99.9 29.4 %
Profit for the period 12.5 8.2 52.8 % 98.7 74.2 32.9 %
EPS (fully diluted) 1.22 0.80 52.9 % 9.64 7.19 34.0 %
Net cash flow operations ‐2.5 ‐13.7 N/A 108.9 85.6 27.2 %
Equity ratio 34.2 % 34.0 % 34.2 % 34.0 %
Cash and cash equivalents 41.6 62.1 ‐33.1 % 41.6 62.1 ‐33.1 %
Number of employees (end of period) 1 211 1 045 15.9 % 1 211 1 045 15.9 %
Number of employees (average) 1 193 1 038 15.0 % 1 139 1 035 10.0 %
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Revenue
o Revenues increased by 22.8 percent y‐o‐y
• Revenues from own consultants increased by 21.5 percent to NOK 285.2 million
• Revenues from sub‐contracted consultants increased by 32.2 percent to NOK 46.6 million
• Other revenues increased by 18.7 percent to NOK 12.4 million
Revenue split (quarterly figures)
Revenue split (12 months rolling average)
0
100
200
300
400
500
Q3'12 Q3'13 Q3'14 Q3'15 Q3'16 Q3'17
0
500
1000
1500
2000
Q3'12 Q3'13 Q3'14 Q3'15 Q3'16 Q3'17
Own consultants
Sub‐contracted consultants
Other
Own consultantsSub‐contracted consultantsOther
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MNOK
MNOK
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Revenues from own consultants
o Increased 21.5 percent y‐o‐y
• Positive impact from increase in billing ratio by 2.0 percentage points
• Positive impact from 15.0 percent increase in average number of employees
• Positive impact from 2.1 percent increase in prices for group hourly services
• 65 workdays in Q3’17– one less than Q3’16
Revenue per employee (quarterly figures)
Revenue per employee (LTM)
0
50
100
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300
350
Q3'12 Q3'13 Q3'14 Q3'15 Q3'16 Q3'17
800
850
900
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1000
1050
Q3'12 Q3'13 Q3'14 Q3'15 Q3'16 Q3'17
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TNOK
TNOK
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Analysis of change in revenues y‐o‐yRevenue MNOK
35.4
11.4 6.7 6.2 4.7 2.8
0.2 ‐3.5
‐10
‐5
0
5
10
15
20
25
30
35
40
No. of employees Sub‐contractors Progress in projects Billing ratio Hourly rate Maternity leave Other effects No. of work days
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Change in revenues – effect on EBIT
35.4
11.4 6.7 6.2 4.7 2.8
0.2 ‐3.5
6.9 0.8 5.1 4.7 3.5 1.2
‐0.1 ‐2.7
‐10
‐5
0
5
10
15
20
25
30
35
40
No. of employees Sub‐contractors Progress inprojects
Billing ratio Hourly rate Maternity leave Other effects No. of work days
Change in Revenue Effect on EBIT
22
Revenue MNOK
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Earnings
o Operating profit increased y‐o‐y in Q3’17
• EBIT margin of 5.0 percent compared to 4.3 percent in Q3’16
o Operating expenses increased by 22.0 percent compared to Q3’16
o General growth in pay rate 0.6 percent y‐o‐y
o Other operating expenses increased 27.3 percent
EBIT and EBIT margin
EBIT and EBIT margin (LTM)
0%
2%
4%
6%
8%
10%
‐
20
40
60
80
100
120
140
Q3'12 Q3'13 Q3'14 Q3'15 Q3'16 Q3'17
EBIT EBIT margin
0%
5%
10%
15%
0
10
20
30
40
50
Q3'12 Q3'13 Q3'14 Q3'15 Q3'16 Q3'17
EBIT EBIT margin
23
MNOK and Percent
MNOK and Percent
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Cash flow
o Cash flow from operations
• Negative NOK 2.5 million in Q3’17 compared to negative NOK 13.7 million in Q3’16
o Last 12 months
• Operational cash flow over the last 12 months was NOK 108.9 million
o Cash flow from investing activities
• Negative NOK 7.1 million compared to negative NOK 4.8 million in Q3’16
MNOK
Cash flow from operations (LTM)
020406080100120140
Q3'12 Q3'13 Q3'14 Q3'15 Q3'16 Q3'17
‐50
0
50
100
150
Q3'12 Q3'13 Q3'14 Q3'15 Q3'16 Q3'17
24
Cash flow from operations (per quarter)
MNOK
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Outlook
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Outlook
o Recruiting in a tough and challenging market
o Rapid adoption of artificial intelligence and machine learning in every sector
o A good market
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Shareholders as of 08.11.2017Investor Number of shares % of total
VARNER KAPITAL AS 1 070 000 10,44 %
VPF NORDEA AVKASTNING 943 020 9,20 %
STENSHAGEN INVEST AS 770 402 7,52 %
PROTECTOR FORSIKRING ASA 720 000 7,02 %
HURUM SVERRE FINN 507 873 4,95 %
MP PENSJON PK 504 904 4,93 %
VEVLEN GÅRD AS 420 000 4,10 %
VIRTUS KAR INTERNATIONAL 247 945 2,42 %
STUBØ ERIK 237 373 2,32 %
UBS SWITZERLAND AG 203 900 1,99 %
SIX SIS AG 200 000 1,95 %
DYVI INVEST AS 200 000 1,95 %
STOREBRAND NORGE I VERDIPAPIRFOND 194 789 1,90 %
TELENOR PENSJONSKASSE 186 800 1,82 %
BOUVET ASA 168 682 1,65 %
STOREBRAND VEKST VERDIPAPIRFOND 143 463 1,40 %
VOLLE ANDERS 119 590 1,17 %
RADIG NILS-HÅKAN 79 754 0,78 %
VERDIPAPIRFONDET STOREBRAND OPTIMA 73 847 0,72 %
TALLAKSRUD OLE-JØRGEN 70 873 0,69 %
Number of shares held by the 20 largest shareholders 7.063.215 68,92 %
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